U.S Stocks fell for a second day Tuesday, as major stocks fell on news of deteriorating credit markets.
Re-instilling confidence in the financial markets will be a long and slow process, the U.S Treasury Official in charge of debt management said on Tuesday.
Morgan Stanley, Goldman Sachs Group Inc., Merrill Lynch & Co. and Lehman Brothers Holdings Inc. shares dropped after JPMorgan Chase & Co. said it will cut its earnings estimates due to a drop in mergers and acquisitions and reduced fee for services.
Stocks fell the day before as well, snapping a four-day streak of gains that was fueled by heightened
expectations for an interest-rate cut by the Federal Reserve.
Goldman, the world's largest securities firm by market value, dropped $5.49 to $221.40. Morgan Stanley dropped $1.68 to $50.60. Merrill slipped $1.61 to $57.45 while Lehman slid $1.81 to $59.57.
The Standard & Poor's 500 Index lost 7.87, or 0.5 percent, to 1,464.55 at 11.26 a.m. in New York. The Dow Jones Industrial Average decreased 36.82, or 0.3 percent, to 13,277.75. The Nasdaq Composite Index slid 11.12, or 0.4 percent, to 2,626.01. Almost three stocks fell for every one that rose on the New York Stock Exchange. Benchmark indexes in Europe and Asia also slumped.